Profits and losses

[spert]

http://www.theage.com.au/afl/afl-news/d ... 1npc3.html

Interesting read. Very disappointing to see us in loss territory after so many finals appearances in recent years, though the dud deal at Etihad is a killer..I do hope our board are right on top of putting strategies in place to get back over the line and into some kind of profit

[saintly]

bulldogs and dees have been relyingon the AFL for millions thats why they make a profit this year.

[Go Sainters Go]

Relocation costs and establishment cost at LHC would be extensive this year and, coupled with the losses in gate receipts thanks to Ian Collins and the less than expected membership revenue, it is easy to understand why the loss this year. Lets hope for an increase in membership to 45,000 next year and an increase in gate receipts (AFL supported) will mean recouping this year's losses next year - and more hopefully.

[StNoodles]

Bombers posted a huge profit.

Etihad is their home ground too, right?

[Rosco]

i recall reading that they, for some reason, have a more favourable deal at etihad. will check though.

[savatage]

i recall reading that they, for some reason, have a more favourable deal at etihad. will check though.

That is indeed correct. Being the initial club there, they got given a ridiculously good deal compared to ours.

[Sainternist]

Too many disillusioned fans after losing 2 GF's in 2 years did it.

We somehow have to get those fair weather fans back onboard

[desertsaint]

they were the 'marquee' club for thenew stadium. their deal no doubt compensated by the poor deals the struggling clubs were basically forced to sign. yet another example of teh afl playing favourites and ensuring it has a degree of control over lesser clubs by keeping them alive via a drip system. as ystem they would likely not be as dependent on if they weren't eternally shafted in the first place.

[Rosco]

couldn't find anything concrete but plenty of rumour on here: http://www.bigfooty.com/forum/printthre ... 9457&pp=30

[saintbrat]

as the mArquee team of the new stadium one of the points of Essendon's deal was first right to update whenever anyone else got offfered a new deal- s9o they always stay ahead.
they also have the rights to the sports store near Gate 1- DO NOT BUY THERE.

other teams initially had a deal meaning they needed to get ~ around 30,000 to male money
the next deal the saints entered was that there was no base figure for attendance ( because we had barely been making that number) But a base amount paid- which in affect could have been less than it should have been because by this stage we were getting bigger crowds.- with winning games etc.-
the last deal ended either 2009 or 2010 and since then the Club has not had any contract with Etihad-
we are contracted to play there because the AFL schedules us there.
the biggest loss comes from the reserved seat costs-

if at the G we would get the majority of any funds friom reserved seats- at etihad it is minimal..
I can be corrected on the above- But as I have heard it,

[plugger66]

as the mArquee team of the new stadium one of the points of Essendon's deal was first right to update whenever anyone else got offfered a new deal- s9o they always stay ahead.
they also have the rights to the sports store near Gate 1- DO NOT BUY THERE.

other teams initially had a deal meaning they needed to get ~ around 30,000 to male money
the next deal the saints entered was that there was no base figure for attendance ( because we had barely been making that number) But a base amount paid- which in affect could have been less than it should have been because by this stage we were getting bigger crowds.- with winning games etc.-
the last deal ended either 2009 or 2010 and since then the Club has not had any contract with Etihad-
we are contracted to play there because the AFL schedules us there.
the biggest loss comes from the reserved seat costs-

if at the G we would get the majority of any funds friom reserved seats- at etihad it is minimal..
I can be corrected on the above- But as I have heard it,

I would think we would get all the money for season reserved seats as you pay it at the start of the year directly to the club. Maybe on match day reserved seats we dont get it all though.

[bergholt]

http://www.theage.com.au/afl/afl-news/d ... 1npc3.html

Interesting read. Very disappointing to see us in loss territory after so many finals appearances in recent years, though the dud deal at Etihad is a killer..I do hope our board are right on top of putting strategies in place to get back over the line and into some kind of profit

why do we want to make a profit?

footy clubs aren't supposed to make a profit. that just means you aren't spending as much cash as you could on winning games. we should ideally be breakeven or a little under.

and even if we do lose money, the afl will prop us up because they can't afford to lose us. so who cares about "profit"?

[awesome_days]

Profit & Loss can be misleading, without looking at the result, increased loss probably caused by:
Increased depreciation from Seaford
Increased write-offs at Moorabin (asset worth less as not being used)
Financing costs of Seaford

As earlier said should be running around break-even. Over the long term this is a correct statement with short term variance.

With all not for profit organisations you are creating income to serve a purpose, in this case Football Department spending (more spending = better performance). Also need to ignore depreciation and include capital spend (new assets or loan payments)

So I would assume to see something like:
Revenue

Less:
Player payments
Admin Spending

=

Footy department spending

[jays]

how did dons get huge profit

[saintbrat]

how did dons get huge profit

fairytale reaction in memberships and corporate sponsorships due to hird and harvey

[evertonfc]

why do we want to make a profit?

It's a great question.

But in a salary-capped world, making a profit is an issue, for it allows you to invest money in developing the other facets of your club that can help you win matches.

Clubs with bigger profits have the opportunity to...

* Hire top coaches (Lyon taking Fremantle's $ for example).
* Develop elite facilities.
* Employ elite recovery techniques (Arizona/facilities).
* Invest money in marketing the club via television, newspapers and online, thus generating more members.
* Employ community officers to help build links with the local community.

They should also - if they care about their members
* Work to keep ticket prices low, maintaining a connection with the man on the street so he can afford to take his family to the game every week
* Underwrite functions to make long-term members feel as though they are part of the club, rather than just customers to take money from.
* Look after past players and create potential opportunities for employment (if suitable)
* Support charitable works and organisations that the club and its members choose to champion

So, theoretically, I'd like to see us build up a nice warchest to starve off any rainy days that could come our way. We don't ever want to strike financial difficulty that could threaten the club's future.

But we don't want to make money for money's sake. That's not what a club is about.

The club is about people, and the money should be invested in making this a great club.

We win games on the field and we look after our members off it.

If that's where we push our profits, I'd be delighted to post a neutral balance sheet in the years ahead.

I would hope most supporters feel exactly the same way.

[Dr Spaceman]

why do we want to make a profit?

It's a great question.

But in a salary-capped world, making a profit is an issue, for it allows you to invest money in developing the other facets of your club that can help you win matches.

Clubs with bigger profits have the opportunity to...

* Hire top coaches (Lyon taking Fremantle's $ for example).
* Develop elite facilities.
* Employ elite recovery techniques (Arizona/facilities).
* Invest money in marketing the club via television, newspapers and online, thus generating more members.
* Employ community officers to help build links with the local community.

They should also - if they care about their members
* Work to keep ticket prices low, maintaining a connection with the man on the street so he can afford to take his family to the game every week
* Underwrite functions to make long-term members feel as though they are part of the club, rather than just customers to take money from.
* Look after past players and create potential opportunities for employment (if suitable)
* Support charitable works and organisations that the club and its members choose to champion

So, theoretically, I'd like to see us build up a nice warchest to starve off any rainy days that could come our way. We don't ever want to strike financial difficulty that could threaten the club's future.

But we don't want to make money for money's sake. That's not what a club is about.

The club is about people, and the money should be invested in making this a great club.

We win games on the field and we look after our members off it.

If that's where we push our profits, I'd be delighted to post a neutral balance sheet in the years ahead.

I would hope most supporters feel exactly the same way.

This one does

[Mr Magic]

as the mArquee team of the new stadium one of the points of Essendon's deal was first right to update whenever anyone else got offfered a new deal- s9o they always stay ahead.
they also have the rights to the sports store near Gate 1- DO NOT BUY THERE.

other teams initially had a deal meaning they needed to get ~ around 30,000 to male money
the next deal the saints entered was that there was no base figure for attendance ( because we had barely been making that number) But a base amount paid- which in affect could have been less than it should have been because by this stage we were getting bigger crowds.- with winning games etc.-
the last deal ended either 2009 or 2010 and since then the Club has not had any contract with Etihad-
we are contracted to play there because the AFL schedules us there.
the biggest loss comes from the reserved seat costs-

if at the G we would get the majority of any funds friom reserved seats- at etihad it is minimal..
I can be corrected on the above- But as I have heard it,

I would think we would get all the money for season reserved seats as you pay it at the start of the year directly to the club. Maybe on match day reserved seats we dont get it all though.

It was explained to me by someone at the Club (who was in a position to know) that the Club have to purchase the season reserved seats from Etihad and then on-sell them to the members.
We don't make much from those seat sales.
They are given an allocation by Etihad and take whatever they are given they cannot get more.
If they don't sell them then the Club is stuck with seats they've paid for.

BUT we make nothing from the sale of the rest of the seats.
That revenue goes entirely to Etihad.

[bergholt]

everton, thanks for the thoughtful response. comments inline:

They should also - if they care about their members
* Work to keep ticket prices low, maintaining a connection with the man on the street so he can afford to take his family to the game every week
* Underwrite functions to make long-term members feel as though they are part of the club, rather than just customers to take money from.
* Look after past players and create potential opportunities for employment (if suitable)
* Support charitable works and organisations that the club and its members choose to champion

i tend to disagree with this. 90% supporters do a pretty solid job of feeling connected without the club pandering to them. the remaining 10% will take a lot of money and effort to satisfy.

the club should concentrate on winning games and supporters will take care of themselves. this doesn't mean ignore them - all else being equal do what you can to make them happy - it just means don't spend $200k on some function, spend it on a skills coach.

So, theoretically, I'd like to see us build up a nice warchest to starve off any rainy days that could come our way. We don't ever want to strike financial difficulty that could threaten the club's future.

i disagree that the club's future can be threatened by anything short of massive incompetence. losing money for years on end seems to work out fine for melbourne, north, footscray; because the afl can't lose them. don't be incompetent, sure, but don't go out of your way to save up for the future.

If that's where we push our profits, I'd be delighted to post a neutral balance sheet in the years ahead.

I would hope most supporters feel exactly the same way.

yeah, i hope so too, it's a great point.

some supporters seem to think that their footy club (and their government, actually) are like a household. that they should always try to live within their means, run a profit and save for a rainy day. in fact the analogy is a poor one in both cases and it leads to people saying silly things.

not you though, thanks again for the smart reply, everton.